InterGlobe Aviation (IndiGo) posted a consolidated net loss of ₹2,536.9 crore for the March quarter, compared with a profit of ₹3,067.5 crore a year earlier, as foreign exchange losses, elevated costs, and exceptional charges weighed heavily on earnings. The result was sharply below Bloomberg analyst estimates of a profit of ₹1,871 crore.
Revenue rose 1.3% year-on-year (Y0Y) to ₹22,438.4 crore from ₹22,151.9 crore in the same period last year, indicating modest top-line growth despite a challenging operating environment. However, profitability was significantly impacted by rising costs and currency volatility.
A major drag on profitability was a foreign exchange loss of ₹4,823 crore during the quarter, compared with a forex gain of ₹136.6 crore in the same period last year. With more than 60% of IndiGo’s costs linked to the US dollar, the weaker rupee significantly increased overall expenses and weighed on earnings performance.
Geopolitical Headwinds
The escalation of geopolitical conflict in the Middle East led to 150 route disruptions, including airspace constraints, network challenges, and selective travel decoupling, which together took a toll on the airline’s operations. However, the country’s largest airline said capacity, measured in available seat kilometres (ASKs), increased 3.4% to 43.6 billion despite disruptions arising from the ongoing conflict in the Middle East. Passenger traffic declined marginally by 1.1% to 31.6 million passengers, while load factor fell 1.7 percentage points to 85.8%.
The airline also reported exceptional items worth nearly ₹250 crore during the quarter, primarily related to the implementation of India’s new labour codes. These one-time charges further added to the overall loss.
Fuel costs saw a decline of 1.5% but remained elevated at ₹6,650 crore during the quarter, while total expenses climbed 30.1% to ₹25,932.5 crore from ₹19,928.1 crore a year earlier. Higher maintenance expenses, employee costs, and finance-related charges also contributed to the rise in overall expenditure, adding further pressure on margins.
Looking ahead, the airline expects its capacity growth to moderate further, projecting an increase of around 3%–4% in the first quarter of FY27. This follows a period of volatility in which the airline reported a quarterly loss driven by reduced capacity utilisation, a weaker rupee, and rising fuel costs. In comparison, IndiGo had recorded capacity growth of 16.4% in the first quarter of FY26.
Full-Year Financial Realities
For the full financial year FY26, IndiGo reported revenue from operations of ₹84,961.9 crore, up from ₹80,802.9 crore in FY25. Despite this growth in revenue, the airline posted a net loss of ₹2,393.6 crore for the year, compared with a profit of ₹7,258.4 crore in the previous financial year.
Exceptional items for FY26 stood at ₹1,796.4 crore, including costs related to the rollout of new labour codes and operational disruptions during December 2025 that resulted in flight cancellations, passenger compensation payouts and a regulatory penalty imposed by the Directorate General of Civil Aviation (DGCA).
Rahul Bhatia, Managing Director, IndiGo said FY26 was marked by an “exceptionally challenging operating environment” that materially impacted profitability. He, however, noted that the underlying business remained resilient, supported by capacity growth of 9.5% and total income growth of more than 6% during the year.
Bhatia added that, excluding foreign exchange movements and exceptional items, IndiGo delivered a profit of ₹7,502.5 crore in FY26. He further said the airline continues to maintain a strong balance sheet and substantial liquidity, while remaining focused on disciplined execution, cost efficiency, and long-term value creation amid an uncertain operating environment.
IndiGo ended FY26 with a fleet of 441 aircraft and a total cash balance of ₹51,651 crore. The airline maintained steady fleet expansion and network growth despite external disruptions across key quarters.
Quarterly profitability remained volatile throughout the year. IndiGo posted a profit of ₹2,176 crore in the June quarter, slipped to a loss of ₹2,582 crore in the September quarter, returned to a profit of ₹550 crore in the December quarter, and again swung to a loss in the March quarter.
Separately, the board approved a partial prepayment of up to $450 million of finance lease obligations to its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Pvt. Ltd. The funds will be used for the acquisition of aviation assets, including aircraft, engines, and aircraft parts.
On May 29, IndiGo shares closed 3% lower at Rs 4,420 apiece on NSE.